"Ease AI Data Regulations"... Government Responds to SMEs' Appeals with Fast-Track System

The government has responded to appeals from the small and medium-sized business sector, which reported difficulties in advancing artificial intelligence (AI) development due to data regulations, by pledging to accelerate legal and institutional improvements. Alongside efforts to enact special legislation for the use of personal information, the government also plans to introduce a fast-track system so that, depending on the case, reviews can be completed within two weeks.

At the 'Regulatory Innovation Grand Debate for SMEs, Ventures, and Startups' held at the Korea Federation of SMEs in Yeongdeungpo-gu, Seoul, Han Seongsuk, the Prime Minister (left), and Kim Kimoon, Chairman of the Korea Federation of SMEs (right), are speaking. Korea Federation of SMEs

On August 12, Jung Gwangcheon, President of the INNOBIZ Association, said at the "Regulatory Innovation Forum for Small Businesses, Ventures, and Startups" held at the Korea Federation of Small and Medium Business in Yeongdeungpo-gu, Seoul, "It is crucial to secure extensive training data to enhance the competitiveness of the AI industry, but many companies face difficulties in collecting, training, and utilizing data due to domestic copyright and personal information protection laws." He added, "Proactive regulatory easing by the government is needed."

Currently, the government is pursuing an amendment to the Personal Information Protection Act, which includes special provisions to allow the use of personal data for AI training. The proposed amendment passed the National Assembly’s Political Affairs Committee in May and the Legislation and Judiciary Committee in July, and is now awaiting final approval in a plenary session.

However, concerns remain among small and medium-sized businesses that even if the amendment passes, a prior review by the Personal Information Protection Commission will still be required for each case, which could pose another burden for AI companies that need to rapidly secure data and develop services. President Jung stated, "To ensure that personal data regulations do not slow the pace of data acquisition and AI development, it is necessary to overhaul regulations related to training data to align with global standards."

In response to these concerns from the industry, the government has stated that it will complete the legislation as quickly as possible and take steps to prevent the prior review process from becoming protracted. The plan is to assign expert committee members to handle AI special cases, and for areas that cannot be addressed using existing methods—but are of public interest and do not infringe on the rights of third parties—necessary safety verifications will be completed within 30 days. Additionally, the government plans to pursue a separate fast-track process that, depending on the issue, can be completed within two weeks.

Lee Jungyeol, Vice Chair of the Personal Information Protection Commission, emphasized, "The procedures will not be prolonged," and "We will do everything we can to ensure that domestic small and venture companies do not fall behind in global competition."

To also reduce legal uncertainties faced by companies regarding copyright issues arising in the AI training process, support measures will be enhanced. Going forward, the related infrastructure will be expanded to ensure AI development companies can formally obtain permission from copyright holders to use their works as training data. The Ministry of Culture, Sports and Tourism plans to complete work by October on establishing a copyright information platform that enables AI developers to identify the rights holders of works they wish to use, and will also introduce a standard contract for permissions between copyright holders and AI companies by the end of the year.

This content was produced with the assistance of AI translation services.